Bombay High Court Quashes Executing Court's Stay Order in Execution Proceedings — Judgment Debtor Cannot Secure Indirectly What Appellate Court Directly Declined. The Executing Court's reliance on Order XXI Rule 26 and Order XXI Rule 29 CPC was misplaced as the appellate court had already declined interim relief in the second appeal.

High Court: Bombay High Court Bench: BOMBAY In Favour of Prosecution
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Case Note & Summary

The petitioner, Sarjerao Krishnarao Kadam, was the decree-holder in a civil suit. The respondents, Uday Ramrao Thorat and others, were the judgment-debtors. The respondents had filed Second Appeal No. 316 of 2014 before the Bombay High Court challenging the decree. On 12 January 2018, the High Court specifically declined to grant any interim relief to the respondents in the second appeal. Despite this, the respondents applied to the Executing Court for a stay of execution. The Executing Court, by order dated 6 December 2017, allowed the application and stayed the execution until the hearing of the second appeal, subject to the condition that the judgment-debtors deposit Rs. 25,000 as security. The Executing Court purported to rely on Order XXI Rule 26 and Order XXI Rule 29 of the Code of Civil Procedure, 1908. The petitioner challenged this order before the High Court. The High Court held that the impugned order was ex-facie unsustainable. Once the appellate court had declined interim relief, the Executing Court could not indirectly grant the same relief. Order XXI Rule 26 only contemplates granting reasonable time to the judgment-debtor to seek a stay from the appellate court, not a stay until the disposal of the appeal. Order XXI Rule 29 was inapplicable because the judgment-debtors had not instituted any separate suit. The High Court allowed the writ petition, quashed the Executing Court's order, and directed the Executing Court to proceed with the execution in accordance with law.

Headnote

A) Civil Procedure - Execution of Decree - Stay of Execution - Order XXI Rule 26 and Order XXI Rule 29 CPC - The Executing Court stayed execution of a decree pending second appeal despite the appellate court having specifically declined interim relief. The High Court held that once interim relief is declined by the appellate court, the Executing Court cannot indirectly grant the same relief. Order XXI Rule 26 only allows reasonable time to seek stay from the appellate court, and Order XXI Rule 29 is inapplicable as no separate suit was filed. The impugned order was ex-facie unsustainable. (Paras 3-7)

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Issue of Consideration

Whether the Executing Court can stay execution of a decree pending second appeal when the appellate court has already declined interim relief.

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Final Decision

The High Court allowed the writ petition, quashed the Executing Court's order dated 06.12.2017, and directed the Executing Court to proceed with the execution in accordance with law.

Law Points

  • Executing Court cannot stay execution after appellate court declined interim relief
  • Order XXI Rule 26 CPC limited to reasonable time for stay from appellate court
  • Order XXI Rule 29 CPC inapplicable without separate suit
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Case Details

2019 LawText (BOM) (04) 154

Writ Petition No. 13505 of 2018

2019-04-15

M.S. Sonak

Mr. Tejpal Ingale I/b Mr. Nikhil Pawar for the Petitioner, Mr. Shekhar Jagtap a/w Sairuchita Chowdhary I/b J. Shekhar & Co. for Respondent Nos. 1 and 2

Sarjerao Krishnarao Kadam

Uday Ramrao Thorat & Ors.

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Nature of Litigation

Writ petition challenging the Executing Court's order staying execution of a decree pending second appeal.

Remedy Sought

The petitioner (decree-holder) sought quashing of the Executing Court's order dated 06.12.2017 staying execution.

Filing Reason

The Executing Court stayed execution despite the appellate court having declined interim relief.

Previous Decisions

The appellate court (Bombay High Court) by order dated 12.01.2018 specifically declined interim relief to the judgment-debtors in Second Appeal No. 316 of 2014.

Issues

Whether the Executing Court can stay execution of a decree pending second appeal when the appellate court has already declined interim relief. Whether Order XXI Rule 26 and Order XXI Rule 29 CPC empower the Executing Court to grant such a stay.

Submissions/Arguments

The petitioner argued that the Executing Court's order was unsustainable as it indirectly granted what the appellate court had directly declined. The respondents argued that the Executing Court had power under Order XXI Rule 26 and Order XXI Rule 29 to stay execution.

Ratio Decidendi

Once the appellate court has declined interim relief, the Executing Court cannot indirectly grant the same relief by staying execution. Order XXI Rule 26 only allows reasonable time to seek stay from the appellate court, and Order XXI Rule 29 is inapplicable without a separate suit.

Judgment Excerpts

Once, the Judgment Debtor applied for interim relief before this Court and such interim relief was declined by a speaking order dated 12.01.2018, there was no question of executing proceedings being stalled until the disposal of the Second Appeal. If this is permitted, then, the Judgment Debtors will secure indirectly, what, this Court has directly declined to them.

Procedural History

The respondents filed Second Appeal No. 316 of 2014 before the Bombay High Court challenging the decree. On 12.01.2018, the High Court declined interim relief. The respondents then applied to the Executing Court for stay of execution. The Executing Court allowed the application on 06.12.2017, staying execution until the hearing of the second appeal subject to deposit of Rs. 25,000. The petitioner challenged this order by way of Writ Petition No. 13505 of 2018.

Acts & Sections

  • Code of Civil Procedure, 1908: Order XXI Rule 26, Order XXI Rule 29
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